Fuel Economy Standards Will Raise Car Prices by 2025

To achieve the government-mandated 54.5 miles per gallon by 2025, vehicle prices should increase by an estimated $2,600.

Feb 14, 2013

As the U.S. auto industry strives to meet more sustainable standards for vehicles on the road, consumers will face higher prices in the future. The Environmental Protection Agency estimated that cars made in 2025 will cost $2,600 more than the new cars in 2011 cost.

This increase in price is the most cost-effective method to reaching government standards for improving engines that use gasoline. Automakers are encouraged to achieve 54.5 miles per gallon by 2025. However, there will be some exceptions and incentives for companies.

In 2010, the average fuel economy was about 20 miles per gallon, and is estimated to be 27 miles per gallon in 2016. While companies are striving for 54.5 miles per gallon, it is more likely to be about 40 miles per gallon on average.

It is also estimated that most people will still be using gasoline-powered vehicles in 2025.

This information comes on the heels of reports that Hyundai and Kia advertised far better fuel economy in their cars than was an actuality.